International management

Question 1

            It is accurate to state that globalization and national receptiveness are completely opposite forces since a company that fully concentrates on one strategy will not be in a position to concentrate on the other. It is however inaccurate in the sense that the company may be in a position to perform the balancing action of focusing on both approaches concurrently. Thus this kind of company would be in a quadrant three of the prevailing conditions which will change the future to come due to the technological advancement (Hodgetts et al 2006). Technologies such as internet marketing enable the company to be high in ranking on both globalizations as well as in national receptiveness.

Question 2

A

            Joint venture approach in Taiwan and South Korea is a good entry approach. This is because the knowhow on the partners would help to make the entry smoother as well as avoid mistakes that may be harmful.

B

The implementation of the market strategy would be determined from one nation to another with an appropriate forecast on demand so as to determine the price and an analysis on the price sensitivity on different regions. Place and promotion should be determined through the joint venture partners from all these countries.

 

C

Visions are essential but without any experience on these ventures, then it poses a problem as it will be difficult to locate components on lower cost sites due to inefficient electrical visions.

Question 3

A fully owned subsidiary is made an attractive form of ownership through the MNC which has a total control. The company believes that the administrative effectiveness will be higher in cases where there are no outside partners. Although many of the MNC prefer to have the joint ventures since the host nations often feel that the MNC are trying to attain an economic power through the setting up of local operations but they are refraining from taking in partners locally. They also fear the fact that the MNC will drive the local enterprises locally.

 

Question 4

A

The current issue in Australia is that there are higher rates of multinationals who are interested in tapping the Australia market (Hodgetts et al 2006). Doing business in Australia is far much profiting as the country has increased demand for financial services.

B

The manager will be the overall decision maker; a small number of senior managers will be hired from US while the rest of the employees will be hired locally.

 

C

New organizational structure such as the joint adventure will highly benefit the MNC and the operation should be decentralized.

Question 5

            Threat of a new government reinstating the existing Russian government is one of the threats that a company entering Russia would face. Another threat is the friction within the country due to the unstableness issue in Russia which could pose a negative effect to the firm. Another threat in Russia is the trouble that Russia faces in transitioning into a market oriented economy (Hodgetts et al 2006). France on the other hand has strong improbability avoidance, strict legal regulation and government instability. It is thus evident that both countries face instability issues which have a negative influence on the company.

Question 6

            Incorporating some of the Iranian partners would be the first step that the company would take in setting an operation in Iran. This would attract the government into looking more favorably into the company. Another step is that the company should minimize the issue of high technology in the company thus making it less profitable for the Iranian state government to confiscate (Hodgetts et al 2006). Finally, the company could generate interdependencies which may involve obtaining of an affiliate that relies on the parent firm for main areas of the operation. Pro active strategies allow for establishment of stronger relations between the MNCs, the government and some of the stakeholders before the rise of a conflict thus giving them a negotiation platform when the political uncertainty causes alterations to arise.

Question 7

A Brazil is still undergoing political instability.

B

Corporations that are interested in Brazilian investments should adopt proactive political strategies so as to affect both the government and competitors.

C

Companies that are able to adapt to the culture as well as the variety of policies will be the most benefiting ones in Brazil.

D

The companies should not consider pulling out of Brazil, but they should plan and strategize on how to handle this policies and they should realize that the higher the risk the higher the profit margin.

Question 8

            The German company is most probable to have a much more centralized decision making process as compared to that of the British firm. German company managers are prone to have higher ranking technical professionals as compared to the British company. They are also probable to be more concerned with the production and the excellence issues than managing of the subordinate. However, the British managers are prone to be more concerned with the sharing of relationship with the other managers.

 

References

Hodgetts, R. M., Luthans, F., & Doh, J. P. (2006). International management: Culture, strategy, and behavior. McGraw-Hill Companies.